This is not a self serving answer, I do not want to Shortsale your property:
In fact, I don't want you to Shortsale it either; if you can possibly help it.
You didn't say how much negative you would be each month if you rented it out: Lets say that the number was $600 per month, and lets say that it took three years to either get the rent in line, refinance or sell the Condo: That would equate to a total loss of approx. $20,000.
I don't want to guess what you could write off, since it would then be a business, not your residence: You should ask your tax person what this would be; but lets hypothasize (guess) 33%. That would mean a net loss of $13,000+ which you would be trading for your credit score, a lot of sleepless nights, and the oppotunity to answer a Deficiency Judgement from your Lender.
Shortsales are intended for homeowners who have no way out, and are virtually "destitute".
Deficiency Judgements are going to be a thing of the future, (my gut tells me.)
My suggestion, if you can, rent it out and go buy another place to live in for a while. In a few years, you can adjust everything to your liking.
Good luck and may God bless.
I have successfully closed short sales for:
-== Investors who make over $500K / year & have LOTS of money saved
== Owners who have NEVER missed a payment & DO NOT have a financial hardship
== Owners who just bought a larger home & short sell the condo! (I have one right now where we have this situation & we've received approval.
I have successfully closed MANY short sales, NOT ONE of my sellers had to take back a Promissory Note!
I have had a 100% success rate in closing short sales in California since early 2007.
Please email me directly if you would like to talk about your situation. My office is in Long Beach & I live close by too.
Realtor Since 1996
Short Sale Expert
Main Street Realtors
Best of Luck,
Beware of agents that tought their CDPE qualifications! I am SFR, simialr to CDPE and still just because someone specializes in distressed sales doesnt make them an expert. ELI is right to use the MARS disclosure that say we as agents cannot promise an outcome and too many agents talk up their expertise without disclosing the downside of short sales.
As mentioned, you need to inversely qualify for your current mortgage. So if you could get the mortgage now for the condo with your current income and debt structure, and you have assets, really hard to make the case for any hardship. Assuming you want a single family house, rent the condo, for one year and rent a house. Underwriting rules nowadays wants to see a tenancy for existing property in most cases for 6 months before you can qualify for a mortgage on the new house.
Hardship is often in the way you explain it. You have some positives going for you:
1. Outgrown your condo.
2. Only one bank to deal with - which is huge. As reported elsewhere, only about 60% of short sales close. However, I would estimate that 80% to 90% of the ones that do not close are ones where the first lender and the second lender cannot reach an agreement on how much the second lender is to receive. I just has a short sale approved in a week with one bank. And I had another that dragged on for a year without being resolved because the second wanted more than the first was willing to pay.
Negatives that will need to be fixed / explained:
1. Fair amount of cash saved.
One strategy might be to rent it out and then go for a hardship as the rent doesn't cover your costs.
Good luck and give me a call if I can help.
ERA Buy America Real Estate Services
Sara Mehrpouyan CDPE
Dre license #01712757
All the best,
Coldwell Banker Star Realty
BRE Lic #01456982
If I were you, I would have a local agent that understands the short sale process thoroughly. You want the best advice. They can assist you in determining hardship. Second, if you do not have a strong financial analysis background, I would talk to your CPA about tax effects of new loan terms versus staying with the current note, if short sale is not in the cards for you. You could have positive cash flow, but may be better off with the negative effect of renting with tax write offs.
Most short sale situations are pretty straight forward and easy to advise. Yours certainly is not one of them. Get some good council.
I think it would best for an offline discussion as every scenario is different.
Normally you need a hardship....there are tons of reasons for a potential hardship...and to show you how much the banks want to DO SHORT SALES right now and HELP sellers avoid foreclosure...
the banks are NOW as of NOV. 1st, 2012...allowing homeowners to do a short sale WITHOUT being delinquent at all in your payments....you can be totally current AND do a short sale.
The banks will start accepting what is called a "Strategic Default", meaning basically a walk away ...your hardship is that you are UPSIDE DOWN and there is no equity.
Also, here in CA ..this is the ONLY STATE where the homeowner does NOT have to make any CASH contributions in order to get the short sale approved...the homeowner pays ZERO!
Also, you cannot be forced to sign any promissory notes at all anymore here in CA.
In addition, the short sale is FINAL...meaning the bank will give u a letter showing the debt is SETTLED in FULL for less than what was owed...this is final...and it is NOT on your credit as a charge off..but SETTLED IN FULL.
The short sale is FINAL here in CA, meaning once you close escrow, your lender can NEVER pursue you for any deficit amounts AFTER the short sale...EVER! It is final.
There are tons of incentives now that the banks are willing to give more than ever...because of the huge 28 billion dollar lawsuit recently...where the banks were found guility of securitizing and selling off many loans... to other investors...they are now willing to give YOU the homeowner
a minimum of $3000 to up to $35,000 relocation assistance money....
They were never doing this before like they are now...
They are doing this because they have been sued by thousands, and have been ordered by HUD to help homeowners and are being watched...so they have changed their tactics.
As of this email I am writing today...Chase bank alone has over 10,000 lawsuits actively against them for wrongdoings with homeowners loans and the foreclosure process...
But most people do NOT have the monies to SUE their bank..which costs thousands and takes months and months of time....
So YES..you CAN do a short sale...pay ZERO.... WALK AWAY....Have all deficiencies waived...
and still retain your credit...
My door is open.... you can call me just to ask as many questions as you wish for free....
there is NEVER a charge for advice or to do a short sale ever....
if anyone charges you any money... RUN!!!
Real Estate Network Group
Short Sale & REO/Bank Owned Specialist
Over 400 short sales approved.
New Short Sale rules will be in effect Nov.1 ,2012. Since every short sale transaction is completely unique, a complete free analysis would benefit you . Typical hardships are loss of work, disability, divorce ,illness and lack of ability to pay. For example, you can still Short Sale a home without being late on the mortgage payments. In addition, since the Short Sale Rules are changing right now,you may be able to do a short sale without having a traditional hardship reason. Especially if you need to downsize right now , that may be a plausible reason.
I am a Short Sale Specialist and would be glad to review the specifics and see if you qualify for a short sale. Please take a look at my short sale information site, http:'' http://;www.losangelesforeclosuresolutions.com for more details of types of hardships.
In addition, depending on who your lender is and when you actually took out your loan will be important to know. Each bank has their own specific guidelines on how they decide if you qualify for a short sale. Please feel free to contact me directly at info@losangelesforeclosuresolutions with more details of your specific situation.
Looking forward to evaluating your situation and providing you with options in order to short sale your home. Lastly, you may even be able to qualify for relocation monies at no cost to you and depending on who your lender is ...the cash back short sale incentives range from $3,000 to $30,000 (FREE MONEY) for successfully completing the transaction.
Blake, I specialize in Short Sales . I am certified by HAFA and the National Association of Realtors as a Short Sale and Foreclosure Resource. Contact me for a private free consultation at 323.608.4881.
Anna Maria Kitras ,Broker Associate- KW
Certified Short Sales & Foreclosure Resource, SFR
Certified HAFA Specialist, CHS
All the best,
That's quite a dilemma you have there.
The good news for you right now, if your property is underwater thats considered by the bank as a hardship. They changed quite a bit.
The bad news you can't buy for at least 3 years once your place was either sold in a short sale or foreclosure.
The advice about renting your place is your other alternative which might be difficult since you own a house and the banks will suspect that once you bought another one then you might either go for short sale anyway.
Have you tried for the harp 2.0 program?
If you get approved and the payment is manageable then the propspect of buying another house might be better.
Contact me if there's anyhting I can do to further explore all your options.
Century 21 ACtion!
Long beach, CA 90806
A word of caution on short sales, Three signatures (bank, seller, buyer) are required for short sales. Bank has no obligation to accept a contract between a buyer and the seller. We advise our clients to stay with bank-owned real estate (REO). Short sales usually go for way more than they list at anyway. We have witnessed banks reject multiple offers over list price and re-list at a higher amount. Meanwhile, your earnest money deposit is at risk and if you get tired of watching other properties pass you by and pull-out..your deposit is gone. Stay with REO's, post-foreclosure, not pre-foreclosure.
I wish you the best!
Rick Frissell aka Red Baron Realtor
Well, there needs to be a hardship or the lenders most likely will not approve a shortsale. Most lenders count a shortsale as a foreclosure so in that case you would not be able to buy a new house.
Also if you want I can give you a free home evaluation to determine the exact value of your condo at this time and we can project it into the next 12 months.
Call me: 310-756-2419
Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
The REMERGE Short Sale TEAM successfully closes 99% of the short sales that we have taken on. Its usually not the bank but the buyer or even seller who change their minds too late to save the short sale. Thus the 1%. Banks seems to be more eager and better automated to work short sales more quickly.
Short sales are not regular sales. Deals fall a part because the listing agent does not prepare the buyer and offer to properly account for all possible liens. So, the listing agent that you select DOES make a difference.
Probable success starts in properly structuring the buyer's offer and then negotiating that offer with the bank. It is important to complete (and not overdo) short sale package. We provide that to you. We write the hardship statement based on a phone interview. Check out web site for our track record.
I'd be happy to help you.
Shelly Gorenstein, Broker
REMERGE Real Estate
Banks are approving more short sales than ever before, but the success of the sale is very dependent on the agent's diligence even more so than their experience. I've been working with short sale situations for over 20 years. We currently have properties on the market in 90802, we also do property management. Before you jump on the short sale bandwagon you should get sound advice on your situation and explore ALL your options. You need to think of where you're going and how to get there as the biggest part of the equation.
It may be possible for you to re-negotiate your loan. Although you've "outgrown" your condo, that won't be a good enough reason for you to short sale it and walk away WITHOUT financial consequence. You also do not want to wind up in foreclosure because some well meaning person told you to stop paying your mortgage. Talking with the lender may not be of value as the lender only wants to collect the debt, not regard your circumstance.
Before you take another step, I offer you a FREE consultation with our legal staff at HHA "Homeowner's Help Advocates" Ask for Gary or Alaina. You'll get a Free consult with an attorney, well qualified in every aspect of current real estate issues and solutions. From there you will be able to make the best decision. Call HHA at 866-386-5333 or 916-769-0019
If those are traits you connect with, please allow us the pleasure of assisting you in this?
The Coastal Team
Coldwell Banker Coastal Alliance
We've developed a website specifically to help homeowners like yourself, and a free e-book on short sales. Check it out and if you have any additional questions, feel free to call me at 562-896-2456.
Call us if you need any help, we do this all the time.
Please give me a call to talk about your personal situation and what is the best option to solve your problem.
American Investor Properties, Inc.
DRE License # 01294012
A 10 min conversation with our professional short sales negotiators
in Long Beach will let you know if your odds look good.
We have a great track record and successful clients that are willing
to share their positive experience with you.
Please be bold enough to reach out to us and we will help you. =0)
DIfferent banks consider different things a hardship. I recently worked with a client who had outgrown his 2/2 condo in Long Beach - and that was basically his only hardship. He had an FHA loan, which requires a higher level of scrutiny for short sale approval, yet he was still approved to do a short sale.
The main factors in the success of your short sale are:
1. The lender
2. The mortgage insurer (if you have one)
3. The listing agent/negotiator.
Let me know if I can be of further assistance. Sometimes a 3 way call, with you and your bank, can answer this question quickly. Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
The process to prove hardship is very similar to the process to get a loan. The lender will look at all the same things (tax returns, paychecks, bank statements) to 'unqualify' you. In other words what changed from the time you were given the loan. If you can no longer afford the loan, the lender may approve the short sale.
Hope that helps,
To answer your question, according to the California Association of Realtors (CAR), and this is a direct quote from a recent CAR article:
"3 of 5 short sales transactions close, according to statistics from a recent survey of 2,150 California realtors."
Please don't let this article discourage you because there are many possible reasons why they did not close.
For a bank to consider a short sale, it can vary- job loss, divorce, health problems, any true hardship. It also depends on the lender of your mortgage.
You mentioned renting your condo, and that may be a good idea, as long as you don't lose too much money each month.
Please call me anytime to discuss some options about your home.
DRE # 01414016
Remax College Park